81-14-307 - Loan conditioned on certain transactions prohibited. - Mississippi Statutes

§ 81-14-307. Loan conditioned on certain transactions prohibited.
 

(1)  No savings bank, or subsidiary thereof, shall require as a condition of making a loan that the borrower contract with any specific person or organization for particular goods or services. 

(2)  A savings bank, or subsidiary thereof, must notify borrowers at or prior to the loan commitment of their right to select the attorney or law firm rendering legal services in connection with the loan, and the person or organization rendering insurance services in connection with the loan. Notwithstanding the notice requirement, a savings bank, or subsidiary thereof, may refuse to make any loan if it believes on reasonable grounds that the services provided by the person or organization selected by the borrower will afford insufficient protection to such institution or subsidiary. 

(3)  A savings bank, or subsidiary thereof, may require borrowers to reimburse such savings bank for legal services rendered by its own attorney only when the fee is limited to legal services required by the making of such loan and the borrower has selected the savings bank's attorney in the manner provided by subsection (2) of this section. 
 

Sources: Laws,  1992, ch. 489, § 76; reenacted without change, Laws,  1997, ch. 364, § 78; reenacted without change, Laws, 2001, ch. 457, § 78, eff from and after July 1, 2001.